Value Fund
Overview
Objective
Seeks capital appreciation and, secondarily, current income.Strategy
Invests in a diversified portfolio of equity securities of companies that represent excellent value relative to their current price. The Fund seeks a higher return than the market index over time as the stocks it purchases rise in price to more normal valuations.The Management Team
The Fund is managed by the Equity Strategy Team, a group of senior-level investment professionals who average 35 years of experience.Risk/Return
LOW - - - • - - - HIGH
In general, greater returns are associated with greater risks.
Fund Statistics
| Inception Date | 03/03/97 |
|---|---|
| Ticker Symbol | CFVLX |
| Cusip | 200626828 |
| Minimum Initial Investment | $1,000 |
Commentary
| Total Fund Assets as of 9/30/2023 | $254,160,868 |
|---|---|
| Net Asset Value1 | $29.69 |
| Asset Allocation | |
| Equities | 99.3% |
| Cash | 0.7% |
| Weighted Average Market Capitalization | 127.36 Billion |
Holdings
Top Ten Equity Holdings2 as of 9/30/2023
| Chevron Corporation |
4.4% |
|---|---|
| iShares Russell 1000 Value ETF
|
3.6% |
| Duke Energy Corporation | 3.0% |
| Pfizer Inc
|
2.9% |
| J P Morgan Chase & Company | 2.9% |
| Merck & Company Inc
|
2.9% |
| Amgen Inc
|
2.0% |
| General Dynamics Corporation | 2.0% |
| Apollo Global Management Inc | 2.0% |
| Emerson Electric Company
|
2.0% |
Footnotes:
1. The Net Asset Value represents the assets of the fund (ex dividend) by the total number of shares.
2. The composition of the portfolio is subject to change in the future.
3. The Russell 1000 Growth Index is an unmanaged index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Index figures do not reflect any fees or expenses.
Portfolio Holdings
The Fund is subject to market risk so that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular industry sectors and/or general economic conditions.
Holdings and allocations shown are unaudited, and may not be representative of current or future investments. Holdings and allocations may not include the Fund's entire investment portfolio, which may change at any time. Fund holdings should not be relied on in making investment decisions and should not be construed as research or investment advice regarding particular securities.
A prospectus for the Commerce Funds containing more complete information may be obtained by calling 1-800-995-6365 or by downloading it from this website. Please consider a Fund's objectives, risks, and charges and expenses, and read the prospectus carefully before investing. The prospectus contains this and other information about the Fund.
The mutual funds referred to in this Web site are offered and sold only to persons residing in the United States and are offered by prospectus only. The prospectus contains more complete information about the funds, including charges and expenses, and should be read carefully before investing.
The method of calculation of the 30-Day Standardized Subsidized Yield is mandated by the Securities and Exchange Commission and is determined by dividing the net investment income per share earned during the last 30 days of the period by the maximum public offering price (“POP”) per share on the last day of the period. This number is then annualized. The 30-Day Standardized Subsidized Yield reflects fee waivers and/or expense reimbursements recorded by the Fund during the period. Without waivers and/or reimbursements, yields would be reduced. This yield does not necessarily reflect income actually earned and distributed by the Fund and, therefore, may not be correlated with the dividends or other distributions paid to shareholders. The 30-Day Standardized Unsubsidized Yield does not adjust for any fee waivers and/ or expense reimbursements in effect. If the Fund does not incur any fee waivers and/or expense reimbursements during the period, the 30-Day Standard Subsidized Yield and 30-Day Standardized Unsubsidized Yield will be identical.
July started off strong, only to falter in August and September, producing negative returns for equities in the third quarter. The pickup in economic growth caught many investors off guard sending interest rates higher despite the Federal Reserve pausing and not hiking interest rates at both meetings during the quarter. With higher interest rates, investors feared the economy could fall into a recession in 2024, producing uncertainty for future earnings growth. The Commerce Value Fund’s return of -3.76% lagged the Russell 1000 Value Index return of -3.17%.
Stock selection detracted from the Fund’s performance. The Fund’s strongest contributors were Amgen Inc. (2.02%), MetLife, Inc. (1.95%), and Chevron Corporation (4.41%), returning 22.03%, 12.19%, and 8.18%, respectively. The Fund’s top detractors were RTX Corp. (1.94%), Interpublic Group of Companies, Inc. (1.18%), and W.P. Carey Inc. (0.00%), which returned -26.02%, -25.01%, and -14.62%, respectively.
The Fund’s sector allocation contributed to performance for the quarter. The Fund’s 0.71% overweight in the Energy sector, which returned 12.28%, added to performance as it was the best performing sector. The Index had an 8.46% weight in the Energy sector. However, the Fund’s 2.09% overweight position in the Consumer Discretionary sector hurt performance as it was the weakest sector, losing -9.30% for the quarter. The Index had an 5.11% weight in the Consumer Discretionary sector.